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RTC #00-058

February 15, 2000

 

SUBJECT: Request for Adoption of a Motion of Urgent Necessity, Approval of Budget Modification No. 24, and Award of Contract for the Borregas Sewer Repair Project
(UY-99/02-00)

REPORT IN BRIEF

The award of this project is urgently needed to repair a collapsed section of the Borregas Sanitary Sewer Main. On January 28, 2000, the City solicited bids on an urgent necessity basis from five contractors for the repair of the Borregas Sanitary Sewer Main. These contractors are known for their experience with a similar type of project. The City opened the four bids received on February 10, 2000. Staff is recommending that the Council: (1) adopt a motion deeming the project to be of urgent necessity for the preservation of life, health, or property; and (2) award the contract to the lowest responsible bidder, Homer J. Olsen, Inc., in the amount of $465,600. In doing so, staff is requesting that the Council approve Budget Modification No. 24 to provide funds for the construction of the project.

BACKGROUND

On December 2, 1999, a 20-foot section of the 33-inch Borregas Sanitary Sewer Main unexpectedly collapsed between Moffett Park Drive and Humboldt Court. The crown of the pipe failed due to corrosion of the pipe material, resulting in the collapse of the ground above the pipe. The site was stabilized and protected by shoring the sides of the hole and covering the hole with steel plates. The existing sewer was then inspected using closed-circuit television. Evidence of corrosion of the crown of the pipe was concentrated in the area of the collapse and was also found to extend for approximately 600 feet downstream of the collapse.

The sewer is located two feet behind the curb line in a landscaped area. There are utility lines (water, electrical, street light, fiber optic, telephone, and irrigation) within eight feet either side of the sewer. The collapse of the sewer can be deemed to be an urgent necessity for the preservation of life, health, or property in accordance with Section 1309 of the City Charter. Urgent repair is needed (1) to prevent raw sewage from spilling from the sewer into the surrounding soil, and (2) to avoid any damage to the street or the utilities.

On December 6, 1999, the City contracted with the consulting firm of Lee & Ro, Inc., to identify and evaluate alternatives for repair and/or replacement of the sewer and to prepare the necessary plans and technical specifications for this urgent construction. Three alternatives were evaluated for feasibility and cost. The recommended alternative was to intercept the sewer upstream of the collapse, construct approximately 750 feet of sewer with the necessary manholes and junction structures, and reconnect with the existing sewer downstream of the collapse. The project includes about 750 feet of parallel 42-inch pipe and associated manholes and junction structures necessary for a fully functional sewer conveyance system. The new pipeline will be installed along street centerline, to avoid the concentration of buried utilities behind face of curb on each side of the street.

Public Works contracts may be let without advertising for bids if such work is deemed by the City Council to be of urgent necessity for the preservation of life, health, or property (Section 1309 of the City Charter). Because of the urgent nature of this project, only five contractors were invited to bid on this work (in accordance with Section 2.09.070, "Competitive bidding requirements; exemptions", of the Municipal Code). As part of the bid submittal, a mandatory pre-bid site visit and demonstrated recent experience in similar projects were required. Four bids were received for this project on February 10, 2000.

DISCUSSION

The project consists of construction of the new 42-inch pipeline, connection to the existing 15- and 33-inch sewers, street pavement replacement, traffic control, and filling the abandoned 33-inch pipeline. The project was bid using a lump sum basis. This is a complicated project because the work must be completed while maintaining the existing sewer flows of the Borregas 33-inch sewer.

Staff has evaluated the bids and determined that Homer J. Olsen, Inc. is the lowest responsible bidder. For comparative purposes, the Engineer’s Estimate and the four bids received are:

 

Total Bid

Engineer’s Estimate

$ 633,000

1. Homer J. Olsen, Inc.

465,600

2. D’Arcy & Harty Construction, Inc.

553,500

3. Valley Engineers, Inc.

574,517

4. Ranger Pipelines

596,000

Staff recommends: (1) the adoption of a motion of urgent necessity for the preservation of life, health or property; (2) approval of Budget Modification No. 24 to provide funds for this project; and (3) award of the construction contract to the lowest responsible bidder, Homer J. Olsen, in the amount of $465,600.

This project is statutorily exempt from CEQA environmental reviews, as it involves the repair of an existing pipeline less than 1 mile in length.

FISCAL IMPACT

1.

Project Costs

 
 

Consultant

$35,000

 

Construction

465,600

 

Construction Contingency (20% of Construction)

93,120

 

Equipment Rental

10,000

 

Direct Expenses (printing, etc.)

5,000

 

Total Cost

$608,720

2.

Project Budget

 
 

Funds available in:

 
 

Charge # , 821480

$0

 

Additional Funds Needed:

$608,720

There are no funds currently budgeted for this project in Charge Number 821480, Emergency Sewer Repair C Borregas.

Budget Modification No. 24
Fiscal Year 1999/2000

Sewer Utilities Fund

INCREASE

EXPENDITURES

CURRENT

(DECREASE)

REVISED

Charge #821480

$0

$608,720

$608,720

Reserves

20-Year RAP

$10,660,097

($608,720)

$10,051,377

PUBLIC CONTACT

Posting of the Council Agenda. This report is also available on the City’s Internet page and at the City Library.

RECOMMENDATION

It is recommended that the City Council:

  1. Adopt the Motion next in order declaring the project as an urgent necessity for the preservation of life, health or property.
  2. Approve Budget Modification Number 24 in the amount of $608,720.
  3. Award a contract in an amount not to exceed $558,720 (bid of $465,600 plus contingency amount of $93,120) to Homer J. Olsen, Inc., to construct the subject project.

 

 

 

Prepared by:

 

Mark R. Dettle
Assistant Director of P.W./City Engineer

 

 

Reviewed by:

 

Marvin A. Rose
Director of Public Works

 

 

Reviewed by:

 

Mary Bradley
Director of Finance

 

 

Approved by:

 

Robert S. LaSala
City Manager

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